Samsung and Apple Want BlackBerry's Government Fortress Next

Within the high-end consumer smartphone market, it's unambiguously a two-horse race between Apple (NASDAQ: AAPL  ) and Samsung. On the enterprise and government side of things, the top two smartphone vendors still have their work cut out for them. BlackBerry (NASDAQ: BBRY  ) still has a grip on those subsectors, but the Canadian smartphone maker is slipping.

The Wall Street Journal has heard rumblings that Samsung is about to score two orders from U.S. government agencies. The FBI and Navy might be able to order up some Galaxies in what would be the South Korean giant's first contracts after getting its devices approved by the Department of Defense a few months ago.

Samsung has put a lot of weight behind developing Knox, its security suite that sets it apart from its Google Android brethren. Knox sits on top of Google's platform as a separate layer of security features to appeal to enterprise and government users.

Samsung Knox. Source: Samsung.

The DoD approved Knox in May at the same time that BlackBerry 10 earned the seal of approval. It wouldn't be long for Apple to join its competitors, as just a couple of weeks later the DoD would similarly sign off on iOS 6, validating the iPhone for use within government agencies. At the time, the DoD had more than 600,000 commercial devices in use, including:

Type of Device

Number of Devices

BlackBerry

470,000

Apple

41,000

Android

8,700

Commercial mobile devices in operational and pilot use as of May 2013. Source: Department of Defense.

That shows how much of a lead BlackBerry currently has, but remember that the majority of those devices are running on the older BlackBerry 7 platform that the company is transitioning away from.

The figures can also be seen as an opportunity for Apple and Android to chip away at BlackBerry's lead. Samsung's Knox gives it a leg up in scoring government contracts compared to other Android OEMs that may not have the resources to develop unique security offerings.

While the possible FBI order is reportedly larger than the Navy one, neither one is remarkable compared to the volumes that Samsung enjoys in the consumer market. Rather, the company sees much more opportunity in the enterprise than the government, but scoring some government contracts would give Samsung validation that could help it sell better in the enterprise. Samsung has begun marketing heavily to enterprise users, such as its "Unicorn Apocalypse" series of ads that began airing earlier this year.

Apple and Samsung have already eaten BlackBerry's consumer market share, and the two heavyweights are looking to take down BlackBerry's government fortress next.

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 21, 2013, at 9:06 PM, Walter118 wrote:

    Evan, your tilt toward Apple and now toward entire Duopoly including Samsung is well known. Why in your article you didn't mention even once Microsoft dealings with gov. if only contract with DoD going well over $ 600 mln closed earlier this year. Good journalism is about objectivity, fairness and above all truth.

  • Report this Comment On July 21, 2013, at 11:41 PM, BR14 wrote:

    Nice ad for Samsung.

    However, if these departments do buy Samsung Knox they'll only be able to use S4's (for now). And they won't be able to manage any other devices.

    Whereas if they use BlackBerry Enterprise Server 10 they'll be able to support either of the big two and BlackBerry 10 as well.

    And then again, is Knox really as secure as Samsung would like us to think it is. They're not able to mess with the underlying operating system, so probably not.

  • Report this Comment On July 22, 2013, at 12:37 AM, i7up2001 wrote:

    Might get harder for Apple , their Developer web site is down since Thursday Due to HACKING oops!

  • Report this Comment On July 22, 2013, at 3:58 PM, sandra96 wrote:

    Pennystockchief^dotcom (Dot means .), is ideally the most comfortable site for mastering the movement and trends of BBRY stock via their free reports that have great insight and analysis

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